Tamil Nadu power procurement sparks political controversy

The Tamilaga Vettri Kazhagam (TVK) government in Tamil Nadu is facing intense political scrutiny over its decision to procure electricity at rates as high as Rs 35 to Rs 37 per unit. AIADMK general secretary Edappadi K Palaniswami has labeled the procurement a ‘vettri mega scam’, accusing the administration of creating an artificial power shortage to justify high costs. Palaniswami noted that previous administrations procured power at significantly lower rates, ranging from Rs 11 to Rs 20 per unit.

Energy Resources Minister CTR Nirmal Kumar attributed the high costs to an unexpected surge in peak power demand, which rose by nearly 30% to approximately 21,700 MW due to El Niño-related weather patterns. However, critics have pointed to a lack of planning, noting that other states like Andhra Pradesh and West Bengal secured short-term power at much lower rates (Rs 14.5 to Rs 20 per unit) by finalizing agreements well in advance.

While the TVK government cited the need for 4,400 MW of additional power, opposition leaders argue that the late invitation for bids—only a week before the required period—contributed to the inflated prices. The state's power distribution corporation is also managing significant financial pressure, with reported debts reaching Rs 2.48 lakh crore.